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... the the ... to me a ... property prices appeared not to be working as ... prices in major Chinese cities rise and ever con joining me now ... is Michael flied Bene head of research for greater China region Jones Lang LaSalle in to see him ... how surprised are you I mean we would announce email on our new host and ... measures to rein in the property market day in the not working right ... to use all of that at the end of March the local government announcements about implementation work very benign ... and the was upon him from running in March ahead of those announcements people ... looking in the secondary market on load things ... developers of one tree projects trying to unload before price caps came in ... local announcements ... pretty benign ... only Beijing implemented the capital gains tax hike on the show other cities did not ... bomb and as result things are still running along has that war ... is a lot of liquidity in the Markit ... implementation is fairly weak right now ... so you're seeing prices of moving up you seen transactions on relatively high at this it basically was the guy on is that they take the capital gains tax for example of capital gains on second properties ... lot of people just ignoring that the measures that can play ... that well so it's up to the local government right to decide how they implement the policies and to um ... I think in both the case of Shanghai and long till they said we will implement them ... but they didn't put a timeframe around when that would happen ... my expectation of our view is that this is going to change very soon the central government policy makers are seeing ... the action in the market but probably not terribly happy about the headline risk associated with it ... we would think that they will ask or demand ... that your one cities to revisit the issue of implementation are you anticipating anymore any further tightening measures on turning the rain in the market ... you know again our view is that because the implementation of the new five measures from the beginning of more twist open a line which is to say they were really implement that they don't need to put new measures in place they just need to get better execution ... and that's that dichotomy with the difference between ... the central government's intentions in the local governments desires around ... keeping the property boom going ... so ... we think that um ... the first thing he is up and better ... enforcement in pure one cities because that's producing the fastest price growth ... and the second is probably the effect of price caps which is where local governments local mayors of basically had to say we won't let prices go up by more than say ... income growth and GDP growth of ten percent ... in this calendar year ... I think you'll start to see the effect of those price caps ... as we go forward from here ... it's the you think things actually gonna get better rather than worse ... better from the central government's perspective in terms of headline risk around price action so ... month on month growth in prices was lower in April than it was in March we think that that does it rained down ... on transaction volumes were low working people than they were in March and again we think that that trends down ... to take some of the pricing power away from developers ... so actually we don't think that the central government has to really act to forcefully right now we think the market ... will actually take care of that Saturday and present was a such a highly psalmist ten percent and rise and in home prices ... silly me say trending down out how much are you talking about so that's the truth freedom but the growth rate is not as fast rated its decelerating still going up but the celebrating ... um ... and you know I think in in picture one cities in particular they're couple of things that are at play here ... one is develop her four front running implement ... the potential implementation of capital gains taxes so if you're a luxury developer absurd from running the iam ... price caps to curate developer of one tree homes ... you had a in ... a strong interest to try to get rid of your inventory before those measures came into effect so that actually has some impact on the price action ... because the bowl from mixer projects in that period of time impacts ... the price index ... is the law poetry homes it means you're price index to look relatively high ... and as we go forward from here I think you see it ... the mix changed the last one tree more mass market that means the price pressure will appear to come off silly to say this weak spot is now an easier and faster looking up this market where is the sweet spot exactly ... um and and this is frankly consistent with our view has been our view for some time ... on the whole week of policy is to try to get developers to build projects that are positioned lower ... so at the end of the baby isn't about whether my secretary can afford electric flat if prices come down ... it with the developers are building something that suited the position for our ... so that means projects that are further from the city center ... unit sizes are smaller ... pickups are left with curious to know that something that's ... more affordable for her ... and so building things that actually move down the income or to get closer to people who make ... average income ... that's what policy is pushing developers to do ... it Spirit to fill it takes time and it's gonna take awhile for we get there and Kate great thanks Fran much Michael quite entertaining us and honk on ... for more on China Property indebted Des beest dot com I'm Deborah con ...